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FranchiseVerdict

How Much Does a Chili’s Grill & Bar Franchise Cost?

Data from the 2023 Franchise Disclosure Document

Investment Summary

Total Investment

$1.8M – $6.5M

Franchise Fee

$60K

Royalty

1.3%

Ad Fund

2.7%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Chili’s Grill & Bar is $60K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Chili’s Grill & Bar franchise requires a total investment of $1.8M – $6.5M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $20K to $30K.

Ongoing Costs

Beyond the initial investment, Chili’s Grill & Bar franchisees pay ongoing fees. The royalty fee is 1.3% of gross sales (Gross Sales). The advertising or brand fund contribution is 2.7% of gross sales. There is also a technology fee of $2.

Net Worth & Liquid Capital Requirements

Chili’s Grill & Bar requires working capital of $20K – $30K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

Chili’s Grill & Bar does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

How Do Banks View Chili’s Grill & Bar?

SBA Loans Issued

2

Default Rate

0.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Chili’s Grill & Bar has 2 SBA-backed loans on record. The default rate is 0.0%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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